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One of the problems faced by many newly independent nations was violence between ethnic groups.

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Prior to the actual end o the Revolutionary war, United States passed "The Articles of Confederation." This led the new national government to confront a host of issues during the 1780s. The first major one to be addressed by Congress was what to do with all of the land acquired in the West. Starting in 1784 Congress passed a series of land ordinances that provided for land surveys, sales of land to individuals, and the institutional foundation for the creation of new states. These ordinances opened the West for settlement. While this was a major accomplishment by Congress, other issues remained unresolved. Having repudiated its own currency and no power of taxation, Congress did not have an independent source of revenue to pay off its domestic and foreign debts incurred during the war. Since the Continental Army had been demobilized no protection was being provided for settlers in the West or against foreign invasion. Domestic trade was being increasingly disrupted during the 1780s as more states began to impose tariffs on goods from other states. Unable to resolve these and other issues Congress endorsed a proposed plan to hold a convention to meet in Philadelphia in May of 1787 to revise the Articles of Confederation.

Rather than amend the Articles, the delegates to the convention voted to replace them entirely with a new form of national government under the Constitution. There are of course many ways to assess the significance of this truly remarkable achievement. One is to view the Constitution as an economic document. Among other things the Constitution specifically addressed many of the economic problems that confronted Congress during and after the Revolutionary War. Drawing upon lessons learned in financing the war, no state under the Constitution would be allowed to coin money or issue bills of credit. Only the national government could coin money and regulate its value. Punishment was to be provided for counterfeiting. The problems associated with the states contributing to a common treasury under the Articles were overcome by giving the national government the coercive power of taxation. Part of the revenue was to be used to pay for the common defense of the United States. No longer would states be allowed to impose tariffs as they had done during the 1780s. The national government was now given the power to regulate both foreign and interstate commerce. As a result the nation was to become a common market. There is a general consensus among economic historians today that the economic significance of the ratification of the Constitution was to lay the institutional foundation for long run growth. From the point of view of the former colonists, however, it meant they had succeeded in transferring the power to tax and regulate commerce from Parliament to the new national government of the United States.

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Q: One of the problems faced by many newly independent nations was?
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